On Friday, the State Health Plan board laid out new plans that would let Treasurer Brad Briner adjust pricing for state employees.
These changes aim to save millions by tweaking Medicare options and prescription drug costs. But the main topic was employee premiums.
Briner expressed his concerns, stating, “I don’t enjoy this, but medical costs can’t be expected to stay the same forever.”
As the board chair, Briner wants to change premiums based on salaries. This means lower-paid state employees would pay less, while those earning more would pay more.
The State Health Plan is facing financial challenges, mainly due to rising healthcare expenses. Briner mentioned that it’s likely that premiums will increase for most of the 740,000 members by 2026.
Currently, members who only cover themselves can pay as low as $25 a month. However, costs can rise significantly if they change their coverage or add family members, with some plans reaching up to $780 a month.
For employees earning over $65,000 a year, premium increases could range from $35 to $50 monthly. Those making less could see an increase of $20 to $25.
Briner is a Republican who recently replaced former Treasurer Dale Folwell, who advocated for more funding for the State Health Plan amidst rising costs due to longer lifespans and increased medical needs.
Later this year, the board will vote on proposed premiums and any changes to coverage.
Tamika Walker Kelly, president of the North Carolina Association of Educators, highlighted the impact of premium increases, noting, “This could take $200 to $300 a year from teachers.” She stressed that such increases make a significant difference.
Kelly raised a tough question: “Should I go to the doctor or pay my bills or feed my child?”
While some board members responded positively to the tiered premium idea, nothing has been finalized yet.
